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MNI INTERVIEW: Fed To Cut Gradually If Growth Solid - Giannoni

Former senior Fed economist Marc Giannoni speaks to MNI.

MNI (WASHINGTON) - The Federal Reserve will move slightly faster to get policy closer to neutral after a disappointing July jobs report, but the U.S. economy is in all likelihood still going strong, which calls for a gradual Fed easing cycle, former Dallas Fed research director Marc Giannoni told MNI.   

He now expects three consecutive quarter-point cuts to end the year, one more than before the jobs report showed unemployment jumping two-tenths last month to a three-year high of 4.3%, followed by three more quarter point cuts spread through 2025. Unless data show the macro picture has suddenly shifted, a more aggressive 50-basis-point cut would not be warranted, said Giannoni, now chief U.S. economist for Barclays. 

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MNI (WASHINGTON) - The Federal Reserve will move slightly faster to get policy closer to neutral after a disappointing July jobs report, but the U.S. economy is in all likelihood still going strong, which calls for a gradual Fed easing cycle, former Dallas Fed research director Marc Giannoni told MNI.   

He now expects three consecutive quarter-point cuts to end the year, one more than before the jobs report showed unemployment jumping two-tenths last month to a three-year high of 4.3%, followed by three more quarter point cuts spread through 2025. Unless data show the macro picture has suddenly shifted, a more aggressive 50-basis-point cut would not be warranted, said Giannoni, now chief U.S. economist for Barclays. 

Keep reading...Show less